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Informist, Tuesday, Nov. 11, 2025

By Narayana Krishna and Shakshi Jain

MUMBAI/NEW DELHI – Bosch Ltd. on Tuesday said cut in Goods and Services Tax, reduction in vehicle prices, and upcoming new models will likely boost automobile demand in 2025-26 (Apr-Mar). Passenger car growth is projected to reach an all-time high in FY26. This surge is expected from new model launches and the GST overhaul, the management said in a post-earnings conference call with analysts.

Bosch is a leading supplier of products like vehicle electronics to safety system along with software solutions to the automotive industry. The company's net profit for the September quarter rose 3.4% on year to INR 5.54 billion and its revenue rose 9% on year to INR 47.95 billion.

"The commercial vehicle segment anticipates gradual growth in FY26. Demand will be bolstered by sustained infrastructure development and replacement needs for older vehicles. While LCVs (light commercial vehicles) benefit from economic activity and e-commerce, medium and heavy commercial vehicles are poised for a gradual recovery, supported by policy, seasonal demand and stable freight," Bosch's management said. Good monsoon has a positive impact on rural economy, which may boost the auto industry demand, particularly in two-wheeler segment. 

Bosch's management expects the tractor market to be fuelled by strong rural sentiment, favourable monsoon, GST cuts, and rising minimum support prices for key crops. "Demand is expected to remain buoyant even post-festive season, driven by these GST reforms. The two-wheeler segment is projected to reach an all-time high, driven by steady replacement demand and a robust urban consumption revival. Healthy rural incomes from a normal monsoon along with recent GST rate cuts will boost affordability and purchases," the company said.

Bosch's automotive products segment revenue for the September quarter was INR 42.7 billion, up 13.6% on year. Automotive segment, which the company calls it as mobility business, accounts for over 85% of the company's total sales.

"Our strategy is clear, we are actively leveraging our robust portfolio (in mobility segment) strengths, maintaining strict cost discipline and focusing on margin stability. Crucially, we are expanding our product portfolio aligned with market demands," Bosch said.

The consumer goods business, which accounts nearly 15% of the company's total sales, grew by nearly 2% on year to INR 4.37 billion. The growth was contributed by new launches in entry and mid-price product segments, measuring tools, and outdoor garden equipment, the company said. The management said the segment reported slightly lower than expected growth due to GST related transition and it is expected to revive in coming months, as the company has good product mix in the segment.

The management said the company has big business opportunities in electric vehicle space and moving towards better business in this category. The company said the margin pressure in electric vehicle space will remain, but it is working on mitigating the impact with measures like controlling raw material costs.

"On hybrids, our position is quite clear. We have a lot of technology for the hybrid segment. We offer this to several OEMs (original equipment manufacturers) globally. And we are very open to doing that in the Indian market as well," Bosch management said.

Bosch said hydrogen technology is emerging in heavy commercial vehicles space and market penetration of this technology may touch 8% to 15% of the total vehicles by 2030. The management said in passenger vehicle segment, future growth will be driven by technology solutions that create comfort and luxury for the buyer.

Bosch said the company is a bit cautious on exports. "There is a lot happening in the geopolitical space, also connected to tariffs, landed costs, and so on. So we are assessing the situation," the company said. Though tariffs are linked to the US, there are other geographies that may also get impacted due to the overall uncertainty, the company said.

"Our commitment to increase exports in the long run still is very much valid. We want to do that. But at this point of time, we need to watch the space very cautiously on how this overall situation plays out and how competitive we will be from India towards exports to various geographies," Bosch said.

On Tuesday, shares of Bosch ended at INR 36,680 on the National Stock Exchange, down 1.6% from its previous close.   End

Edited by Ashish Shirke

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